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In every industry there is a ‘next’. Say goodbye to complete auto-digital fusion and hello to the next dimension of co-integration.

In its 18th consecutive year, the Global Automotive Executive Survey is KPMG International’s annual assessment of the current state and future prospects of the worldwide automotive industry. In this year’s survey, almost 1,000 senior executives from the world’s leading automotive companies were interviewed. Additionally, more than 2,400 consumers from around the world have been surveyed to give us their valuable perspective and compare their opinion against the opinion of the world’s leading auto executives.

Lost in translation

The auto industry is lost in translation between evolutionary, revolutionary and disruptive key trends.

Our report shows that executives are torn between evolutionary and revolutionary drivetrain technologies. 76% of executives believe internal combustion engines will be more important than electric drivetrains for a very long time.

Battery electric vehicles will fail due to infrastructure challenges, while 78% of executives believe fuel cell electric vehicles will be the real breakthrough for electric mobility.

From offline to online

There is a status of “Co-ompetition”, with Silicon Valley players seen as ready to compete and take their stake in the mobility market. Strategic alliances and cooperation between converging industries will be the fundamental driving force in future.

Roles throughout the value chain are not yet decided: 85% of executives agree that in future the digital system will generate higher revenues than the hardware of the car.

Measuring success based on unit sales is outdated, according to 71% of executives. Connected vehicles will generate higher revenue streams and customer value will become the core focus.

A car will need its very own ecosystem, 82% of executives agree. An independent virtual cloud ecosystem is needed to balance power between end consumers, digital tech giants and traditional hardware companies, like auto manufacturers.

Geopolitical turmoil & regional shift

Geopolitical risks and macroeconomic turmoil: The fear of political changes is as strong as the fear of terrorism, war and natural disasters.

Dramatic change upcoming: Western Europe is not only facing political changes but also severe pressure in the auto industry due to regional shifts. 60% of executives believe the EU will have fallen apart by 2025.

There is a clear tendency for an even stronger shift towards China: The majority of executives expect the global share of vehicles sold in China to reach 40% by 2030.

In every industry there is a ‘next’. Say goodbye to complete auto-digital fusion and hello to the next dimension of co-integration.